Coinbase now allows users to borrow USDC stablecoin against their bitcoin at a fixed interest rate and repayment date, marking the exchange’s expansion into fixed-rate onchain lending.
The product, which settles on Coinbase’s Base layer 2 network, runs on the Morpho Midnight protocol. Unlike Coinbase’s existing variable-rate loans on Morpho Blue, where rates fluctuate based on supply and demand, the new offering locks both the interest rate and repayment date at origination.
“The move takes onchain borrowing beyond the predominantly variable-rate model, giving users greater certainty over the cost and duration of their borrowing,” Coinbase said in an announcement.
Coinbase’s variable-rate lending business currently holds $1.4 billion in active loans backed by $3 billion in collateral. The bitcoin-backed credit market stands at roughly $16 billion today and is projected to reach $130 billion by 2030, according to figures cited in the announcement.
Existing Market and Competition
Fixed-rate bitcoin-backed loans are not new. Ledn and SATL Lending have offered such products for years. Coinbase’s distinctive advantage lies in delivering onchain fixed-rate borrowing through a DeFi app embedded within a mainstream consumer exchange.
Paul Frambot, Morpho co-founder and CEO, said the launch represents a scaling moment for the protocol. “We’re now building on that foundation and starting to scale: new loan types and use cases, bringing onchain credit one step closer to the scale and diversity of global credit markets,” Frambot said.
Demand Signals
A February-March 2026 survey by Protocol Theory of 1,244 cryptocurrency holders found that 88% said they would consider crypto-backed loans. The Morpho Midnight protocol itself launched in July 2026.
Coinbase did not specify exact interest rate ranges, loan minimums, maximum amounts, or detailed user access procedures for the product.
